Kenya Airways swings to Sh10.5 billion operating profit in 2023
Kenya Airways cut its losses by 41 per cent to Sh22.7 billion, attributing the losses to the depreciation of the shilling against major currencies.
Kenya Airways' has recorded an operating profit of Sh10.5 billion for the year 2023, compared to an operating loss of Sh5.6 billion in 2022. Last year's operating profit was the airline's first since 2017.
The Group's total revenue increased by 53 per cent to close at Sh178 billion, which they mainly attributed to a 43 per cent growth in passenger numbers, with the airline saying it will increase flights on popular routes such as Nairobi to London and secure new planes to take advantage of that momentum in demand.
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"These figures highlight the airline's remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector. They also confirm the operational viability of the airline business and demonstrate that the management's ongoing efforts to restore profitability are yielding positive results," Kenya Airways Chairman, Michael Joseph said at an investor briefing event.
Kenya Airways has cut its losses by 41 per cent to Sh22.7 billion, majorly attributed to losses that came about due to the depreciation of the shilling against major currencies.
The latest result is a drop from the Sh38.3 billion reported in 2022, which the airline attributes to continuing efforts aimed at bringing the KQ on the recovery path.
Kenya Airways Group Managing Director and CEO, Allan Kilavuka, said during the year, the company's main focus remained on improving customer experience, operational excellence, and cash conservation.
"These efforts resulted in the airline improving its On-Time Performance (OTP) to a high of 76 per cent from an average low of 58 per cent at the beginning of the year, ranking it as Africa's second most efficient airline. Additionally, the introduction of the Asante Rewards loyalty program and the revamp of KQ's website aimed to better appreciate and reward customer loyalty while improving user-friendliness and functionality," he said.
Kilavuka emphasized that the airline's top priority going forward is to continue building on the gains made in the airline's turnaround strategy, Project Kifaru, which is the airline’s turnaround project that started in February 2022.
Along with this, in the near term, he said the focus is on completing the capital restructuring plan, whose main objectives are to reduce the company's financial leverage and increase liquidity to ensure the company can operate at normalized levels.
"Our primary focus going forward is dedicating ourselves to fostering innovation, nurturing partnerships, and cultivating a culture of excellence to ensure that Kenya Airways soars to new heights of success. Additionally, we will continue to engage the government in recapitalizing the business to place Kenya Airways on a stronger footing and provide a stable base for long-term growth," said Kilavuka.
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